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/biz/ - Business & Finance

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14081339 No.14081339 [Reply] [Original]

The tokenomics of the LINK token.

1. Chainlink nodes will be paid in LINK tokens only. There will be conversion tools for people that want to use fiat but will be converted to LINK. at the end of the day only LINK tokens can power the network since the nature of ERC-677 token, built specifically for LINK, is to transfer data.

2. LINK tokens are used as collateral value. Smartcontracts will use Chainlink nodes that carry a % value of LINK to the value of the Smartcontract. So yes, you can start a node without LINK but no one will use it. High value smartcontracts or any contract that has value will use nodes that carry the same or a % of value of LINK.

3. Decentralized networks that are home to smartcontracts will need decentralized data to execute. Chainlink is currently the only option. Thats why you will see everyone in this space partner with Chainlink

So....

Smart contract creators will demand a certain level of reputation or amount of collateral, to be paid in LINK tokens, that suits the value of their smart contract. A $1million bond would require a lot more collateral, than, say a smart contract dealing with $100. You wouldn't select the low rep/low collateral available nodes for something like a huge bond. Chainlink is actually targeting these high value contracts. Sergey has discussed at length why high value contracts in the financial world require a decentralized oracle: it puts all the risk onto the oracle rather than the smart contract creator. The smart contract creator doesn't risk losing money - the node operators do. The Chainlink network is genius like that.

>> No.14081350
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There is infinite amount of collateral available because the token price can rise to meet it.

Now you have to research how large ALL these markets are. derivatives, insurance etc... hint: Trillions.

The purpose of Chainlink is a network that incentives truthful data provided by individuals running LINK nodes (aka known as mining 2.0) while also providing compensation to smartcontracts just in case false data was used to trigger an agreement.

So the price will rise not only to meet the insured needs of smartcontracts but also because the LINK node miners are making money providing this service much like the price of BTC. (there are about 3 main factors that make the price rise one of them from mining and difficulty)

Its very simple.

The more LINK staked in the nodes, the more profit one can make running that node.
The more LINK staked in the nodes the bigger the smartcontract economy can become.
The more LINK staked in the nodes the more stable the network/connectivity becomes.
Finally
The more LINK staked in nodes the higher the price becomes.

We are witnessing something really special. The birth of the HTTP equivalent in Crypto.

The only comparable investment to LINK is when BTC or ETH first came about. Decentralized digital currency, Decentralized smartcontracts and now Decentralized oracle network. This trifecta will lead us into the next economic boom.

>> No.14081368
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14081368

Depending on the inputs to the smart contract,
it is imperative that the smart contract is not corrupted by “fake data”

Suppliers would have plenty of incentive to trick the OEM into over-buying components.

Wall Street short sellers would also have billions of reasons to tank the stock by interfering with and/or sabotaging the OEM smart contract.

Banking and financial industries are already plagued by fake data, with the potential for catastrophe rising as automation increases.
If the oracle is compromised, so is the entire contract.

>> No.14081371
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14081371

Thanks for the hopium fren.

But lets face it, to sergey, we’re nothing more than a big mac to chew on

>> No.14081437
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>> No.14081688
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14081688

>>14081371
but you're forgetting, Sergey loves Big Mac's.